Apple Music must first afford to sell iPhone. That’s it?

4 years ago

Music With Apple, the US giant should not earn much more money, says Piper Jaffray analyst Gene Munster. This is his reading of the last launch of Apple in a note to investors.

Thus, at best, Apple Music should generate less than 1% of additional revenue for Apple 2016, $ 1.8 billion. And then only if Apple manages to match the leading streaming, Spotify, and its 15 million paying subscribers. Or to Gene Munster, this scenario is quite unlikely.

Prick for Android and Windows users?

So what’s Apple enter this market? Because according to the analyst, the goal of a new product or service is not necessarily to generate a lot of money. It considers that Apple first seek to convert new users to its ecosystem.

Clearly, by providing “a compelling music experience,” Apple can expect to sell the iPhone (not ) than in addition. And more Apple devices in circulation, it is an opportunity for the company at the same time to develop its sales on iTunes, among others.

“Apple Music account, because music is fundamental for the experience mobile phone “ahead Gene Munster. But the streaming service will be available on Android and Windows end of 2015. What would he here Apple iOS

Apple Music: first answer the demand

For the analyst, the service “could help attract an increment iPhone buyers from competing platforms.” This theory does not convince ZDNet.com. For the site, compatibility with other OS responds first to a market imperative.

Apple Music must necessarily compete with rivals streaming including Spotify, OS agnostic matter. But the Cupertino company also needs to adapt to user applications.

Now they enact increasingly streaming, to the detriment of paid download, the model favored by Apple via iTunes Store so far. If Apple Apple Music contributes to enriching its iOS ecosystem and thus promote sales of terminals, it can not overlook the market trend in music consumption and the products of its competitors.